Strong Australian Unemployment data – Have GBPAUD exchange rates peaked?

GBPAUD Forecast - Is the pound likely to make a move back towards 1.85?

Higher Participation rate boosts AUD

GBPAUD levels have come down almost 2 cents since the 1.8354 peak this week, currently trading around 1.8143. This is owing to a much better Unemployment report which suggest the Australian economy is performing better than previously believed This makes a future interest rate hike more likely than previously and is a good opportunity for anyone selling AUD for GBP.

Pound to Australian dollar exchange rates had peaked at 1.8354 this week presenting some of the best rates since April, we are very close to a 5-month high to buy Australian dollars with pounds. The key question now is with the pound having risen against the Australian dollar 10 cents since the 1.73 low last month, has GBPAUD peaked?

Brexit a big driver on the pair

Much of the improvement has been related to the pound which has strengthened on improving Brexit optimism. Clients with a position to buy or sell Australian dollars for pounds have had a very choppy month which reflects the uncertainty of the Brexit plans.

Whilst there is hope of a ‘deal’ will be completed to avert the negativity a no-deal scenario will encourage, there does remain plenty of opportunity for disappointment in the pound.

On the Australian dollar side the currency has been weaker as investors concerns remain over the Trade Wars which could easily derail some of the strength in the Chinese economy and pile pressure on the Australian dollar. This is because the Australian economy relies heavily on the Chinese economy for trade.

What next for GBPAUD?

Today is a very important day for GBPAUD rates with the latest Bank of England report and also the European Central Bank report too. Clients with a position looking to buy or sell GBPAUD could see some fresh twists and turns on the pair. GBPAUD rates could easily dip back below 1.80 if the Bank provides investors with fresh cause for concern over the direction of the UK economy.

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